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Many students who study using our platform have reported that a large number of the practice questions here are very similar to those that appear in real exams. View Courses
Many students who study using our platform have reported that a large number of the practice questions here are very similar to those that appear in real exams. View Courses
What is the first step for HR when planning staff reductions?
Correct Answer: C. Manage planning and communications. The first step HR should take in planning staff reductions is to manage planning and communications. Effective workforce reduction requires careful coordination, messaging, and alignment with organizational strategy. HR must ensure legal compliance, minimize disruption, and preserve trust by creating a communication plan that is transparent, timely, and empathetic. Planning includes identifying the scope of reductions, selecting criteria for employee impact, preparing support mechanisms, and coordinating with managers. Communication must be carefully crafted to address both departing and remaining employees, as mishandling can damage morale, employer brand, and productivity. By starting with structured planning and communication, HR ensures that the process is orderly, consistent, and respectful. This proactive step reduces uncertainty, prevents misinformation, and positions the organization to maintain stability through a difficult transition. Without strong planning and communication, even well-intentioned staff reductions risk organizational chaos and reputational harm.
Why Other Options are Incorrect:
A. Broken psychological contracts refer to the breach of perceived promises between employer and employee, which is a consequence of downsizing, not a first step in planning.
B. Reviewing safety and security plans is important in certain contexts (e.g., layoffs with potential unrest), but this is a secondary consideration after overall reduction planning is in place.
D. Increased workloads for team members is a known outcome of downsizing, not a planning step. It is a challenge HR will need to manage later through resource allocation and support.
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